1. Controlling: Concept and Importance
3 Marks
Define 'Controlling'. Why is it called a goal-oriented process?
CBSE 2019
Controlling is the managerial function of measuring actual performance, comparing it with predetermined standards, and taking corrective action if necessary. It is goal-oriented because it ensures that organizational activities are carried out according to the plans and focuses on correcting deviations to achieve specified organizational objectives.
3 Marks
"Controlling is both a backward-looking and forward-looking function." Explain.
CBSE 2020
Backward-looking: It evaluates past performance against set standards to find deviations.
Forward-looking: It aims at improving future performance by providing feedback and corrective measures so that past mistakes are not repeated in the future.
Forward-looking: It aims at improving future performance by providing feedback and corrective measures so that past mistakes are not repeated in the future.
4 Marks
Explain any four points highlighting the importance of 'Controlling'.
CBSE 2023
1. Accomplishing Organizational Goals: Corrects deviations to keep work on track.
2. Judging Accuracy of Standards: Helps managers verify if the standards set were too high or too low.
3. Making Efficient Use of Resources: Reduces wastage and spoilage of resources.
4. Improving Employee Motivation: Employees know in advance what is expected of them and how they will be appraised, which helps them perform better.
2. Judging Accuracy of Standards: Helps managers verify if the standards set were too high or too low.
3. Making Efficient Use of Resources: Reduces wastage and spoilage of resources.
4. Improving Employee Motivation: Employees know in advance what is expected of them and how they will be appraised, which helps them perform better.
2. Relationship Between Planning and Controlling
3 Marks
"Planning and Controlling are inseparable twins of management." Comment.
PREDICTIVE 2026
Planning and controlling are interdependent. Planning provides the standards (the base) for controlling. Without planning, there is nothing to control. Conversely, without controlling, planning is useless as there is no way to ensure if the plans are being implemented or if goals are reached.
6 Marks
Discuss the relationship between Planning and Controlling in detail.
CBSE SQP 2024
1. Interdependence: Planning sets goals; Controlling ensures those goals are met. One cannot exist without the other.
2. Planning is Prescriptive, Controlling is Evaluative: Planning tells us what to do; Controlling tells us if we actually did it.
3. Both are Backward & Forward Looking: Planning is based on past experience (backward) but meant for future (forward). Controlling looks at past performance (backward) to improve future results (forward).
4. Base for Controlling: Standards for controlling are provided only through planning. If there are no predetermined goals, a manager cannot judge performance.
2. Planning is Prescriptive, Controlling is Evaluative: Planning tells us what to do; Controlling tells us if we actually did it.
3. Both are Backward & Forward Looking: Planning is based on past experience (backward) but meant for future (forward). Controlling looks at past performance (backward) to improve future results (forward).
4. Base for Controlling: Standards for controlling are provided only through planning. If there are no predetermined goals, a manager cannot judge performance.
3. The Controlling Process
3 Marks
Explain 'Management by Exception' with an example.
CBSE 2022
It is based on the principle that "an attempt to control everything may result in controlling nothing." Only significant deviations which go beyond the permissible limit should be brought to the notice of top management.
Example: If production cost rises by 2%, it can be ignored (within limit), but if it rises by 10%, it must be reported immediately.
Example: If production cost rises by 2%, it can be ignored (within limit), but if it rises by 10%, it must be reported immediately.
3 Marks
What is 'Critical Point Control'?
PREDICTIVE 2026
Critical Point Control (CPC) suggests that control should focus on Key Result Areas (KRAs) which are critical to the success of an organization. If anything goes wrong at these critical points, the entire organization suffers. Example: A 5% increase in labor cost is more critical than a 15% increase in postage stamps cost.
4 Marks
Briefly explain the steps: 'Measuring Actual Performance' and 'Taking Corrective Action'.
CBSE 2021
Measuring Actual Performance: Performance should be measured in an objective and reliable manner using techniques like personal observation, sample checking, and performance reports. It should be measured in the same units as standards to facilitate comparison.
Taking Corrective Action: This is the final step where deviations are removed. If deviations are within limits, no action is needed. However, if they are significant, managers may provide better training, change the environment, or even revise the standards if they were unrealistic.
Taking Corrective Action: This is the final step where deviations are removed. If deviations are within limits, no action is needed. However, if they are significant, managers may provide better training, change the environment, or even revise the standards if they were unrealistic.
6 Marks
Explain the various steps involved in the process of Controlling.
CBSE 2023
1. Setting Performance Standards: Benchmarks against which actual performance is measured (Quantitative or Qualitative).
2. Measurement of Actual Performance: Collecting data via reports or observation.
3. Comparing Actual Performance with Standards: Finding out the difference (Deviation).
4. Analyzing Deviations: Using Critical Point Control and Management by Exception to identify major issues.
5. Taking Corrective Action: Removing the causes of deviations to ensure goals are achieved in the future.
2. Measurement of Actual Performance: Collecting data via reports or observation.
3. Comparing Actual Performance with Standards: Finding out the difference (Deviation).
4. Analyzing Deviations: Using Critical Point Control and Management by Exception to identify major issues.
5. Taking Corrective Action: Removing the causes of deviations to ensure goals are achieved in the future.
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